In this study, IT is considered as an internal resource that brings sustainable competitive advantages to an organization on the basis of resource based view. The problems facing the organization with regard to IT are to enhance IT resources, which can be the core cpability of an organization, and to link it to long-range business strategy.
Since 1980s, there has been increasing deregulation of the financial service industry in Korea. This structural change has pressed the commercial banks, as well as the other financial subsectors, to seek new profitable sources including IT to improve their performance.
This study examines the relationships among the selected business strategy dimensions, the IT strategy dimensions, and the organizational performance at the Korean commercial banks. Data (1993, 1994) were collected from all of the commercial banks (24 banks) in the Korean financial industry.
The major findings are as follows. (1) IT strategy directly influences the organizational performance. (2) Business-IT strategic groups, derived through cluster anlaysis, resulted in the different organizational performance. This lends statistical support to the previous researches' argument, that the fit between business strategy and IT strategy influences the organizational performance.
